What is the difference between a third arbitrator and an umpire?
A third arbitrator is on an equal footing with the party-appointed arbitrators, though he will also chair the tribunal following his appointment. An umpire has no status in terms of deciding anything until, if ever, the arbitrators disagree. If that happens, then – unless the parties otherwise agree, as often happens when the disagreement is about a procedural matter – the arbitrators drop out of the arbitration entirely (unless the parties request them to remain as advocates, which very rarely occurs nowadays in LMAA cases), and the umpire takes over the whole matter (not just those points on which the party-appointed arbitrators disagree) on his own. Nowadays arbitration clauses requiring umpires instead of third arbitrators are less common. And where there is such a clause and a case goes to a hearing, the arbitrators will often ask the parties to consider varying the requirement so that a third arbitrator may be appointed. That way all three members of the tribunal can participate
